Alexandroupolis FID Slips to Early 2018

Monaco-based LNG shipowner Gaslog said its front-end engineering and design study for the Alexandroupolis floating LNG import terminal (FSRU) project in northern Greece is expected to be completed in 3Q 2017. But it indicated that the target date for the project's final investment decision has slipped.

“As a shareholder of Gastrade (the Greek developer of that project), we are advancing discussions with potential offtakers, with both the Greek and Bulgarian national energy companies expected to play a major role,” said Gaslog CEO Paul Wogan.

“We expect Gastrade to take a final investment decision in early 2018,” he said. That's after the "late 2017" target FID indicated in June when UK contractor Wood Group was awarded the FEED for the subsea aspects of the Alexandroupolis project.

Gaslog will delivery of newbuild LNG tankers in 2018 and 2019, for which it signed seven-year charters last year with Total and Centrica respectively, among other tankers due for delivery out to 2019. However it said current spot charter rates for modern LNG tankers remained low at $35,000-$40,000/day.

The shipowner reported a net 2Q 2017 loss attributable to its owners of $7.5mn, slightly less than its 2Q 2016 loss.

Mark Smedley